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New Delhi: As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2025 on February 1, industry leaders across various sectors have shared their expectations, focusing on growth, innovation, and ease of doing business.
Automakers are seeking consumption-boosting measures, green technology incentives, and EV infrastructure support, while the retail sector is looking for policies to enhance consumer confidence. Tourism and hospitality leaders are calling for infrastructure development, industry status, and tax reforms. Meanwhile, logistics and fintech players want simplified regulations and tax structures. From startups to FMCG, each sector anticipates strategic reforms that will shape India's economic trajectory and foster a business-friendly environment.
Automobile
At a time when the external environment is extremely cloudy, the Union Budget can look at consumption-boosting measures to push demand and drive domestic growth, Tata Motors Group CFO PB Balaji said.
After a good festive season, demand has been weak due to a combination of factors, including tight liquidity and "not so great" market conditions although not a crisis situation, Balaji told reporters in an earnings call.
Stating that there is an expectation of a gradual improvement in demand going forward with the fourth quarter being usually strong and due to the impact of infrastructure investments by the government, he said, "If, on top of it, there are consumption (boosting) measures (in the Budget), then that will help also navigate some of the not so great external situations that all of us face".
Automakers want the government to provide merit-based policies to support a full range of green technologies and alternative fuels besides allocations to facilitate electric vehicle ecosystem like charging infrastructure to further accelerate sustainable mobility in the upcoming Union Budget.
"We request the government for appropriate merit-based policies that support and help in popularising full range of greener technologies and alternative fuels thereby helping in faster and greater adoption of multiple sustainable mobility solutions," Toyota Kirloskar Motor Country Head and Executive Vice President - Corporate Affairs and Governance - Vikram Gulati said.
Further, he said measures to encourage the scrapping of old vehicles through the budget will also boost demand for newer generation vehicles and eliminate the polluting ones.
Stating that the upcoming Union Budget presents an opportunity to address some pressing needs of the automotive sector, Skoda Auto Volkswagen India MD & CEO Piyush Arora said, "A long-term vision for favourable tax structure catering to different automotive technologies would certainly benefit the industry." The product development cycles are quite lengthy and require substantial investment which needs to be considered, he said, adding, "simplifying the GST structure for the different classes of vehicles and components is another ask".
Retail and ease of doing business
Anand Aiyer, CEO of Arrow, expressed hope for initiatives fostering retail growth and simplifying business operations. He emphasised the need for policies that drive innovation, enhance ease of doing business, and strengthen consumer confidence.
He said, “We’re hopeful the upcoming budget will introduce initiatives that foster retail growth and simplify business operations. At Arrow, this is a chance to innovate, expand, and continue delivering exceptional fashion for the modern Indian man.”
Tourism
Nishant Pitti, Chairman of EaseMyTrip, called for initiatives to redefine travel experiences with modern technologies like AI, IoT, and VR. He highlighted the need for infrastructure development, particularly in Tier II and Tier III cities, increased airports, policies encouraging niche tourism, and funding for smart tourism. Pitti also suggested abolishing the 18% GST on certain hotel rooms and deducting taxes at the manufacturing level of the travel industry.
He added, “Continuing the stride of spiritual and domestic tourism through schemes like PRASHAD, Dheko Apna Desh, Swadesh Darshan 2.0, and more, we expect the government to fund more states to develop tourism centres and encourage travellers to travel to India.”
Hospitality
MakeMyTrip co-founder and Group CEO Rajesh Magow on Monday said the hospitality sector's long-pending demand for an "industry” status and continued focus on infrastructure development to ensure last-mile connectivity are crucial to realising its full potential.
"The hope is that it should be growth-oriented budget, which effectively should set the tone for pretty much every sector, including travel and tourism sector for us as well. “And within that, you know, the long pending demand of the hospitality sector, on getting the industry status continues to remain, and I think, and it's an important one, for the overall industry," Magow said.
Logistics
RS Subramanian, SVP South Asia, DHL Express, emphasised reducing logistics costs by simplifying regulations and making compliances easier. He stressed the importance of infrastructure development and expressed hope for more e-commerce export hubs to support MSMEs. Subramanian also called for simplified tax structures and customs procedures for exporters, along with collaboration on sustainability aspects.
Subramanian commented, “This year, we see more push from the government to set up e-commerce export hubs that aim to support MSMEs as well. We look forward to collaborating further with the government to simplify tax structures and customs procedures for exporters. Sustainability is an emerging focus area for all businesses, especially in international trade, and we hope that we can collaborate on these aspects as well.”
Fintech
Vinay Bagri, Co-Founder & CEO of Niyo, hopes for continued simplification of financial processes, particularly reducing TCS on international travel and easing compliance for startups. He also looks forward to policies promoting digital banking, fostering fintech innovation, and making global travel more accessible.
Finance
Aadhar Housing Finance MD and CEO Rishi Anand said the upcoming Budget should focus on reviewing and modifying important regulations that take into account the current state of the housing market essential for making homeownership genuinely affordable.
"The existing Rs 2 lakh income tax deduction for housing loan interest should be increased to Rs 4 lakh. Additionally, to support first-time homeowners during the waiting period for possession, this refund should apply to residences that are still under construction for a maximum of two years," Anand added.
Startups
Ganesh Sonawane, Founder and CEO of Frido, urged the budget to reflect the potential of India's startup ecosystem. He suggested streamlining GST processes, introducing R&D tax incentives, and providing easier access to funding, particularly for health-focused startups. Sonawane also emphasised encouraging startups to scale manufacturing for global markets.
Sonawane said, “Encouraging startups to scale manufacturing for global markets will also be crucial in reinforcing the Make in India for the world initiative. With the right support, entrepreneurs can position India as a global hub for wellness and ergonomic solutions, showcasing the country’s ingenuity and innovation on the world stage,”
Skincare
Preetam Jena, CMO & e-commerce Head at Fixderma India, anticipates continued growth in the skincare market and expects policies supporting the industry's expansion, especially in Tier-2 and Tier-3 cities.
Insurance
Jude Gomes, MD & CEO of Ageas Federal Life Insurance, highlighted the growing retirement savings gap and suggested simplifying or removing taxes on annuity and pension products. He also proposed extending the Rs 50,000 tax exemption for NPS contributions to annuities and pensions and revising the GST on term life insurance policies. Gomes also called for 'zero rating' for certain schemes and policies to expand access to insurance.
Bajaj Allianz Life MD and CEO Tarun Chugh said India's economic growth presents immense opportunities for the insurance sector to enhance financial resilience.
"Aligning tax deduction of life insurance annuity products with the National Pension Scheme (NPS) and addressing the issue of tax on principal component on annuity products can evolve retirement needs effectively," he added.
Chugh also made a case for the introduction of a separate tax deduction for term insurance and extending the tax deduction on life insurance premiums under the new tax regime.
FMCG
Aman Choudhary, Director of Marketing at Anmol Industries, expressed optimism about the government's continued support for the FMCG sector. He believes that strategic investments in infrastructure and favourable policies will further enhance their reach across India.
These diverse expectations underscore the importance of the upcoming budget in shaping the future of various industries and driving India's economic growth. The focus on innovation, ease of doing business, and support for key sectors will be crucial in determining the budget's overall impact.
E- Gaming
A stable policy that spurs investments and job creation, alongside a more rational and progressive taxation regime, tops the Budget wishlist of online gaming companies, according to E-Gaming Federation Anuraag Saxena.
Saxena said a slew of measures suggested by the industry can "turbocharge" the sector. The online gaming industry is also keen on playing a bigger role in participating in initiatives that involve and educate people about various government schemes through online educational games.
"We need policy clarity and policy stability, which is what both domestic investors and foreign investors look for. The e-gaming industry is also pitching for a more rational and progressive taxation regime. We would like more rational and progressive taxation, which honestly, over the last 10-12 years, the government has been able to achieve through the whole GST process, which was really cumbersome if you think about it. Ideally, we want tax policies that provide a fillip to the industry," he said.
Sanitary ware
Akshat Seth, MD & CEO of HIL Limited said that government support for initiatives encouraging sustainable building solutions and powering up popular schemes such as Jal Jeevan Mission & PM Avaas Yojana can help create employment, improve health & sanitation conditions while providing affordable housing and essential infrastructure to the masses.
The Indian sanitaryware sector is projected to reach a market valuation of approximately USD 948.5 million by 2025, growing at a CAGR of 7.9% from 2024 to 2029.
Rapid urbanisation and infrastructure development, Changing Consumer Preferences and increased hygiene awareness and technological advancement are major boosters for the sanitaryware sector in India, according to Pranav Desai, Head of Innovations, at HIL.
“Manufacturers are also innovating with sustainable materials, product durability, and technologies to meet the evolving demands of consumers. From water-saving technology to sustainably sourced raw materials, brands are actively advancing their efforts toward a climate-positive future,” Rustogi said.